3 ms·
It’s better than free, you get a discount relative to NBBO.
by ivalm 5y ago
It’s better than free, you get a discount relative to NBBO.
- repsilat 5y agoThe higher-level argument might be that if PFOF didn't exist, NBBO might be better. If Citadel et al wanted to make markets they'd have to publish their prices. (Of course, that gets rid of the "market segmentation" signals, so it'd probably make life a little better for institutions and make life a little worse for individuals, on net. No doubt smart people could disagree about how much of each effect there would be.)
- ivalm 5y ago> that gets rid of the "market segmentation" signals Exactly, retail investors should basically be happy with PFOF.